Strategy & Vision for the Development

Plymouth situated on the South coast of Devon is approximately 37 miles (60 km) south-west of Exeter and 190 miles (310 km) west-south-west of London.

The city sits at the estuarys of the river Plym and Tamar, naturally forming Plymouth Sound and Devons boundary with Cornwall. At the 2011 Census, Plymouth’s unitary population was 256,384.

436, Tavistock Road Plymouth PL6 7HQ is situated approx 4.5 miles north of Plymouth City Centre. It has direct access onto Tavistock Road B3413 / A386 which leads to the A38 1 mile to the south and Plymouth City Centre beyond.

The property sits within a mixed residential and parkland area and comprises a 2 storey detached former 8 bed hotel on approx. .64 acres.

The plan is to demolish the existing hotel and construct 11 new dwellings and associated works under planning ref. no. 16/02351/FUL Plymouth City Council. The 11 new units will comprise:

Already owned by the borrower who purchased the site in 2016 CrowdProperty has agreed to lend him a max of £2m which will be raised over 3 phases of £925,000, £500,000 and £575,000. CrowdProperty has agreed an initial draw down of £665,000 at completion of legal formalties The remaining phase 1 monies will be held and set against early stage construction costs and consultants fees and released on verification of the IMS certificate.
The RICS valuation of existing site with benefit of planning is £950,000; RICS estimate of completed development (GDV) is £3,255,000 - £267psf. Expected cost of works is estimated at £1.6m and with fees, finance and selling costs adding a further £400,000 the project is showing a 25% profit on cost.

The initial LTV represents 70% of RICS valuation. Assuming the borrower draws the entire facility of £2m at 4 and 8 months the LTV at exit including rolled up interest will be 69%.

The loan will be for a term of 18 months (max) . Further raises are expected to be offered in months 4 and 8 approximately.

The borrower will exit the project by selling the completed houses and repaying The Crowd.

As with all CrowdProperty projects this loan is secured by means of a Land Registry-registered first legal charge on the property.

Exit Strategy

Projected Costs

Projected Returns

The Developer

The borrower will be Millstone Land and Developments (co. reg.no. 09845725). This company owns the land and has a sole director named Karim Ladhu.

Karim’s experience in the property market spans residential property developments including new build sites ranging from six to thirty-six units.

He has also developed in excess of 30 new and refurbished convenience stores and supermarkets. Karim has been investing and developing properties since 2003. Prior to this Karim had a retail based career starting with B&Q in the garden department moving on to landscaping then moving on to his own small garden centre building the business from under £100k turnover to over £1.25m .

His past projects include: Ex-school, planning conversion into a residential home (bought for £70,000; sold for £275,000)

Built six luxury apartments at Western Super Mare (bought and built for £770,000; sold for £1,250,000)

Garage site build 5 new plots Cam, Gloucester (bought for £250,000; sold for £1,000,000)

Exmouth: site acquired, planning permission granted and sold to Tesco (cost £600,000 and sold for £1,500,000)

Planning achieved lifting 3 plots to 7 plots in Taunton

CrowdProperty Comments

This is a well-planned development by an experienced developer who has engaged full set of Consultants to deliver the project.

Phasing the drawdown allows CrowdProperty to further control the release of monies whilst saving the borrower interest on un-utilised monies.

The site is well located in a residential part of Plymouth close proximity to local amenities and the City Centre.

† Estimated Sales Value is more formally referred to as GDV - Gross Developed
Value

‡ Interest Cover is a measure of the project's ability to cover the interest
payments from profits and is calculated by dividing the Projected Return on
Costs by the Total Interest incurred throughout the loan period

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CrowdProperty Ltd is a company registered in England, with its registered office at Crown House, 123 Hagley Rd, Birmingham, B16 8LD (Company No. 08764786). CrowdProperty is registered with the Office of the Information Commissioner (Reg no. PZA047468). CrowdProperty is authorised and regulated by the Financial Conduct Authority registration number 723959.